The divestiture is part of a wider restructuring strategy to focus and streamline its aerospace operations
Bombardier Inc. (Montréal, Canada) announces that as part of its restructuring efforts, it will consolidate its aerospace assets into one unit, called Bombardier Aviation.
This move will involve divesting its aerostructure operations in Morocco as well as Belfast. Alain Bellemare, president, and CEO of Bombardier Inc replied that. “We [Bombardier] are very excited to announce the strategic formation of Bombardier Aviation,”
Bellemare further disclosed that such a move is the right next step in Bombardier’s transformation. He also noted that “consolidation will simplify and better focus our organization on our leading brands, Global, Challenger, Learjet, and the CRJ.”
In spite of the divestment, it is expected that its restructuring will allow Bombardier to provide better support services and also increase revenue. The new Bombardier Aviation business unit is to be led by David Coleal and will continue manufacturing its aerospace structures in its current facility in Montréal, Mexico, and Texas, U.S. However, It will focus on the production of parts for its Global, Challenger, Learjet, and CRJ brands.
According to the company’s first quarter financial report, the company expects full-year revenues for 2019 to be approximately $1 billion lower than originally expected, also citing recent challenges in the company’s transportation business.
The decision has put jobs on the line at one of the province’s largest private sector employers, with a workforce of 3,600 and up to twice as many among suppliers and neighborhood businesses sustained by custom from staff and their families.